IBR I W

Document Sample
IBR I W Powered By Docstoc
					Federal Family Education Loan Program (FFELP)
Income-Based Repayment Plan Application
Use this form for initial determination of your eligibility to repay eligible FFELP loans under the Income-Based Repayment
(IBR) plan or for the required annual reevaluation of eligibility to pay under the IBR plan.

WARNING: Any person who knowingly makes a false statement or misrepresentation on this form or any accompanying
document shall be subject to penalties which may include fines, imprisonment, or both, under the U.S. Criminal Code and
20 U.S.C. 1097.

SECTION 1: BORROWER INFORMATION
                                                                                                       Please enter or correct the following information.
Name ____________________________________________________
Address __________________________________________________                                             SSN |__|__|__|-|__|__|-|__|__|__|__|
City, State, Zip Code ________________________________________
Telephone – Home _________________________________________
Telephone – Work _________________________________________
E-mail Address (Optional) ____________________________________

SECTION 2: INFORMATION AND INSTRUCTIONS

Before answering any questions, carefully read the entire form. Type or print using dark ink. If you need help completing this form, contact your loan holder.
Return the completed form and any required documentation to the address shown in Section 9.

The IBR plan is available for FFELP loans except a loan that is in default, a Federal PLUS Loan made to a parent borrower, or a Federal Consolidation
Loan that repaid a Federal PLUS Loan or Federal Direct PLUS Loan made to a parent borrower. To initially qualify for the IBR plan, you must have a partial
financial hardship. You are considered to have a partial financial hardship if the annual amount due on all of your eligible loans exceeds 15 percent of the
difference between your adjusted gross income (AGI) as shown on your federal income tax return and 150 percent of the poverty line amount for your
family size. The annual amount due is calculated as of the time you initially entered repayment using a standard repayment plan with a 10-year repayment
period. If you are married and you and your spouse file a joint tax return, your AGI includes your spouse’s income. If your AGI as shown on your tax return
does not reasonably reflect your current income, you can provide alternative documentation of your income that will be used to determine your IBR plan
eligibility and payment amount. The amount of your monthly payment under the IBR Plan is based on the current income information you (and your spouse if
you are married and file jointly) provide and is reevaluated annually.

To be considered for the IBR plan, you must provide the holder of the eligible FFELP loans you wish to repay under the IBR plan with the following:
     x    A copy of your most recent signed federal tax return, including electronic filing (form 1040 or 1040A pages 1 and 2, or 1040 EZ). Note:
          unsigned tax returns and forms will not be processed.
                      o     If your most recently filed tax return does not accurately reflect your current income OR if you were not required to file a tax
                            return, complete Section 6 (if applicable) and Section 7.
     x    Certification of your family size. (Complete Section 4.)
     x    Information on loans you have that are eligible for the IBR plan. (Complete Section 5.)

If you have eligible loans held by two or more loan holders and want to repay them under the IBR plan, you must request the IBR plan from each holder.
Your application for the IBR plan will be processed for all of your eligible loans with the loan holder unless you notify your loan holder otherwise.

To be considered for the IBR plan:

      x     Your loans must be in a repayment status (not in-school, grace, deferment or forbearance).
      x     Your loans must not be paid ahead more than 30 days.

If at any time you wish to remove your application or IBR plan, please send this request in writing to customerservice@xlservicing.com or to the address listed at
the end of this form.



SECTION 3: HOW TO DETERMINE IF YOU ARE ELIGIBLE

You can visit an IBR plan calculator available at studentaid.ed.gov to enter your debt and income information and receive an evaluation of your eligibility for
the IBR plan and an estimate of your IBR plan payment amount. The calculator is for informational purposes only; your loan holder will make the official
determination of your eligibility and payment amount based on your application and other required documentation.


SECTION 4: FAMILY SIZE

Enter your family size number on the line below. Your family size includes you, your spouse, and your children (including unborn children who will be born during
the year for which you certify your family size), if they will receive more than half their support from you. It includes other people only if they live with you now,
they receive more than half their support from you now, and they will continue to receive this support from you for the year that you certify your family size.
Support includes money, gifts, loans, housing, food, clothes, car, medical and dental care, and payment of college costs.

Family Size _________        Note: If you fail to certify your family size, your loan holder will assume a family size of one.


SECTION 5: OTHER ELIGIBLE FFELP AND DIRECT LOANS

Enter below your other loans eligible for the IBR plan, both FFELP loans that are held by another holder and Federal Direct Loan Program (Direct) loans held by
the U.S. Department of Education. Information on these loans is needed to determine your eligibility for and the appropriate monthly payment amount for the
                                                                                                                                                                    W


*I*                           *W*                                                                 *IBR*
loans in the IBR plan you are requesting or renewing when you submit this form. List each loan on a separate line and provide the information in each column.
The required information is available in your billing statements or your coupon book, or on the Internet site of your loan holder or servicer or the
National Student Loan Data System (www.nslds.ed.gov).
            a – Enter “FFELP” or “Direct” to indicate the loan program.
            b – Enter the type of loan as “Stafford”, “Grad PLUS”, “SLS”, “ALAS”, “FISL”, or “Consolidation”. Note: Do not include any PLUS loan made to a parent
            borrower or
                Consolidation loan that repaid a parent PLUS loan.
            c – Enter the name of the loan holder.
            d – Enter your loan account number with the holder for the loan.
            e – Enter the estimated outstanding balance of the loan.

If there is insufficient space below to enter all of your other FFELP and Direct loans eligible for the IBR plan, write the required information for additional loans on a separate
page and attach it when you submit this form.

            a                                                                                                                                                      e
                                           b                                           c                                          d
      Loan Program                                                                                                                                       Estimated Outstanding
                                       Loan Type                                  Loan Holder                            Loan Account Number
     FFELP or Direct                                                                                                                                            Balance




SECTION 6: SPOUSE INFORMATION (if you are married and file jointly)


Name        ___________________________________________________________________________________________
                  Last                           First                      Middle Initial

Address     ___________________________________________________________________________________________
             No. and Street                        City                 State          Zip Code

SECTION 7: INCOME INFORMATION (MUST BE COMPLETED BY THE BORROWER AND THE BORROWER’S SPOUSE, IF MARRIED
AND FILING JOINTLY)
You only need to complete Section 7 if your most recently filed tax return does not accurately reflect your current income OR if you were not required to file a
tax return.
You must list all taxable income you are currently receiving (for example, income from employment, unemployment income, dividend income, interest income,
tips, alimony). Include the amount of money received, how often you receive this money, and your employer or the source of the income. If you are married and
file a joint federal tax return, you must also list your spouse’s income and provide documentation of this income. Do not report untaxed income such as
Supplemental Security Income, child support, or federal or state public assistance. If there is insufficient space below to enter all of your sources of income, write
the required information for additional income on a separate page and attach it when you submit this form.
You must provide supporting documentation for all income reported in this section (for example, pay stubs, letters from your employer containing your income,
interest or bank statements, dividend statements, canceled checks, or, when these forms of documentation are unavailable, a signed statement explaining your
income source(s) and giving the addresses of these sources). Your IBR plan eligibility will be determined using a calculated annual income amount based on the
frequency indicated in the table below. All supporting documentation must be no more than 90 days old.

                                                     Frequency of Income (Check the appropriate box.)
Amount of Income                                                                                                                               Employer or Source of Income
                              Weekly               Bi-weekly           Semi-monthly                Monthly                  Yearly

                                 …                     …                      …                       …                        …

                                 …                     …                      …                       …                        …

                                 …                     …                      …                       …                        …

                                 …                     …                      …                       …                        …

      …     Check this box if you do not have any income or receive only untaxed income such as Supplemental Security Income, child support, or federal or
            state public assistance.
      …     Check this box if you were not required to file a tax return.


SECTION 8: DEFINITIONS

x     Capitalization is the addition of unpaid interest to the principal balance of your loan. This will increase the principal and the total cost of your loan.
x     The Federal Family Education Loan (FFEL) Program includes Federal Stafford Loans (both subsidized and unsubsidized), Federal Supplemental Loans
      for Students (SLS), Federal PLUS Loans, and Federal Consolidation Loans.
x     Forbearance means permitting the temporary cessation of payments, allowing an extension of time for making payments, or temporarily accepting smaller
      payments than previously scheduled. You are responsible for paying the interest that accrues on your loan(s) during a forbearance. If you do not pay the
      interest that accrues, the interest may be capitalized.
x     The holder of your FFEL Program loan(s) may be a lender or secondary market.
x     Income-based repayment is a repayment plan with payments based on income and family size. Features of the IBR plan include:
            o      To qualify you must demonstrate you have a partial financial hardship which means the annual amount due on all of your eligible loans
                   exceeds 15 percent of the difference between your adjusted gross income (AGI) as shown on your federal income tax return and the
                   poverty line income amount for your family size. The annual amount due is calculated as of the time you initially entered repayment using
                a standard repayment plan with a 10-year repayment period. Your AGI includes your spouse’s income if you are married and you and your
                spouse file a joint federal income tax return.
           o    When you have a partial financial hardship, your monthly payment will not exceed one-twelfth of 15% of the amount your AGI exceeds
                150% of the poverty line income amount for your family size.
           o    Your payment amount for the IBR plan will be evaluated and established each year. After entry into the IBR plan, you must annually
                provide documentation if you want a payment based on your having a partial financial hardship.
           o    For any year you do not have a partial financial hardship, your payment amount will be the payment amount for your loan(s) under the
                standard repayment plan at the time you initially entered the IBR plan, based on a 10-year repayment period.
           o    In some circumstances your payment amount may not cover all interest that accrues, and your debt may increase. The federal
                government will pay unpaid interest on your subsidized Stafford loan(s) for the first 3 consecutive years of your IBR plan repayment
                period.
           o    Accrued interest is capitalized at the time you choose to leave the IBR plan or no longer have a partial financial hardship.
           o    If after 300 months of qualifying payments and/or use of economic hardship deferment, your loan(s) is not repaid in full, any remaining debt will
                be submitted for forgiveness.
x    Loans eligible for the IBR plan are FFELP loans except a loan that is in default, a Federal PLUS Loan made to a parent borrower, or a Federal
     Consolidation Loan that repaid a Federal PLUS Loan or Federal Direct PLUS Loan made to a parent borrower.
x    Loans ineligible for the IBR plan include a FFELP loan in default, a Federal PLUS Loan made to a parent borrower, a Federal Consolidation Loan that
     repaid a Federal PLUS Loan or Federal Direct PLUS Loan made to a parent borrower, a Federal Perkins Loan, a HEAL loan, and any private education
     loan.


SECTION 9: BORROWER REQUEST, AUTHORIZATION, CERTIFICATION AND FORBEARANCE NOTIFICATION
and WHERE TO SEND THE COMPLETED INCOME-BASED REPAYMENT APPLICATION

I authorize the school, the lender, the guarantor, the Department, and their respective agents and contractors to contact me regarding my loan request(s) or my
loan(s), including repayment of my loan(s), at the current or any future number that I provide for my cellular telephone or other wireless device using automated
telephone dialing equipment or artificial or prerecorded voice or text messages.

I understand I must agree to provide to the loan holder on an annual basis documentation of my income for the purpose of determining my appropriate payment
amount under the IBR plan.

I understand that if I do not provide this information my IBR payment amount will be based on my AGI, as reported by the IRS or on my tax return, or, in some
instances, I will not be allowed to repay my loan(s) under the IBR plan.

I understand that my income information may be requested from the IRS even if alternative documentation of my income is accepted.

I understand that if I am married and file a joint federal tax return with my spouse, my spouse’s income information, documentation, and signature are required.

I certify that all of the information reported on this form and in any accompanying documentation is true, complete, and correct to the best of my knowledge and
belief and is made in good faith.

I request to repay under the IBR plan my eligible FFELP loans held by the holder to which I submit this application and other required documentation.

I agree a forbearance may be granted with respect to payments of interest and principal that are overdue or would be due at the time I enter the IBR plan.


Borrower Signature ____________________________________________________                   Date (mm-dd-yyyy) ___________________


Spouse Signature _____________________________________________________                    Date (mm-dd-yyyy) ___________________


Return the completed IBR application and any required documentation to the        If you need help completing this form, call: 888-811-7101
address below, or you may fax to: 888-811-7103
Xpress Loan Servicing
PO Box 94553
Cleveland OH 44101-4553

				
DOCUMENT INFO